Report – Honda planning to build compact car plant in Brazil

Japan’s third largest automaker, Honda Motor Company is said to be planning an investment of 1 billion reais ($435 million), in order to build a second car factory in Brazil.

According to Bloomberg, two sources familiar with the matter said the plant would be located in Itirapina, about 200 kilometers (124 miles) northwest of Sao Paolo and will start production of compact cars from 2015, also confirming an earlier report from Estado de S. Paulo. Still, for the time being the company has not yet publicly disclosed the investment, so the two persons providing the report asked not to be identified for the time being.

Brazil is the largest auto market in Latin America, with a probable economic expansion accelerating to 2.3 percent this year and 3.1 percent next year, according to analysts forecasts from Bloomberg.